DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 442 Original 2015 Regular Session Leger
Abstract: Changes the tax credit for ad valorem tax paid on public service property owned by
telephone companies from a refundable credit to a credit in which amounts of the credit
above the tax liability may be carried forward and applied against subsequent tax liability for
up to five years.
Present law provides for an income or corporation franchise tax credit for ad valorem taxes paid to
political subdivisions after Dec. 31, 2000, by a telephone company for public service property owned
by the telephone company which is assessed by the La. Tax Commission at 25% of fair market value
pursuant to present law. The amount of the credit shall be equal to 40% of the taxes paid to political
subdivisions.
Present law provides that the taxpayer is entitled to a refund for any allowable credit which exceeds
the aggregate tax liability of the taxpayer. Further requires the Dept. of Revenue to refund the
excess tax credit amount and interest to the taxpayer from current tax collections within 90 days of
receiving a tax credit claim.
Proposed law changes the tax credit from a refundable credit to one in which credit amounts which
exceed taxpayer liability may be carried forward against subsequent income or corporation franchise
tax liability for up to five years. Proposed law deletes the requirement of paying refunds within 90
days of receiving a tax credit claim.
Present law requires the avails of sales and use taxes collected on the furnishing of interstate and
international telecommunication services to be deposited into the Telephone Company Property
Assessment Relief Fund for payment of credits and refunds as provided for in present law.
Proposed law retains present law but deletes references to the payment of refunds.
Applicable to tax years beginning on or after Jan. 1, 2015.
(Amends R.S. 47:6014(D) and (E)(2))